What Defines a Value Stock?
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Benzinga Insights has compiled a list of value stocks in the technology sector that may be worth watching:
- ASE Technology Holding Co (NYSE:ASX) - P/E: 6.64
- Auddia (NASDAQ:AUUD) - P/E: 3.21
- Rimini Street (NASDAQ:RMNI) - P/E: 8.06
- TSR (NASDAQ:TSRI) - P/E: 2.37
- Socket Mobile (NASDAQ:SCKT) - P/E: 6.18
Most recently, ASE Technology Holding Co reported earnings per share at $0.21, whereas in Q4 earnings per share sat at $0.5. Its most recent dividend yield is at 5.03%, which has increased by 2.64% from 2.39% in the previous quarter.
Most recently, Auddia reported earnings per share at $-0.14, whereas in Q4 earnings per share sat at $-0.05. Rimini Street has reported Q1 earnings per share at $0.1, which has decreased by 87.79% compared to Q4, which was 0.86. TSR saw a decrease in earnings per share from 0.12 in Q2 to $-0.02 now. This quarter, Socket Mobile experienced a decrease in earnings per share, which was $0.11 in Q4 and is now $0.04.
The Significance: A value stock may need some time to rebound from its undervalued position. The risk of investing in a value stock is that this emergence may never materialize.
